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Higher But Within Ranges

KOREA RATES

10-Year future is higher, up 18 ticks at 1125.23 and just below Friday's high of 125.31, 3-Year future is up 3 ticks at 109.53. In the cash space yields are lower across the curve, with some bull steepening seen. South Korean FSC chairman Koh spoke earlier, he said that strong preemptive measures would be taken against household debt and that a prolonged low rate could not last. This follows a signal that more BoK rate hikes are on the cards, the Bank said on Friday in its quarterly financial stability report that South Korean companies and households should be able to handle the impact of another interest-rate hike to 1%. Markets look ahead to the 5-Year auction later in the session.

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